KuCoin, Gate.io, and MEXC Global have been in the spotlight of community members as they have expressed support for the upcoming LUNC transaction fire on the network.
As the upcoming Terra Classic (LUNC) record engine — formerly Terra (LUNC) — gained more and more popularity, some crypto exchanges thought it would be a good idea to show their support. However, the crypto community quickly responded by calling for the exchange, in what some consider a PR stunt.
On September 1st, Terra community member Edward Kim submitted a proposal to introduce a 1.2% tax cut on every LUNC transaction on the network to revitalize the cryptocurrency. The transaction tax will be sent to the dead address, permanently removing part of the negotiable offer. After this offer, the LUNC token rose by 250% as the hype around the project showed signs of life.
Because of this, cryptocurrency exchanges KuCoin, Gate.io, and MEXC Global have decided to express their support for the Terra community’s token burn efforts. However, some were unhappy with the announcements and called for an exchange.
After posting an announcement that the exchange was supporting token burns, KuCoin received a call from a Terra researcher alias FatMan asking what they were doing to support this since tax burns are done online. The researcher called the announcement a “PR template” and suggested taxing the actual transactions instead.
In response to the criticism, Johnny Liu, CEO of the KuCoin exchange, told Cointelegraph that their trading platform is neutral and people-centric. “We always respect the decisions of the communities and are happy to help in any way we can. The same goes for the tax proposal,” Liu added.
Gate.io also entered the fray when the exchange announced that it would “implement the proposed on-chain entry for LUNC and USTC” once the proposal is approved. In response, a community member called out Gate.io, calling its announcement false and misleading. The user argued that the implementation on the network is not within the purview of the exchanges, and urged others to boycott the exchange and move to other exchanges that really support the growth of LUNC.
Gate.io Marketing Director Tom Young commented on this issue. Yang told Cointelegraph that their exchanges are committed to the communities of every project listed on the trading platform, including LUNC. According to Yang, “USTC and LUNC trades made on the Gate.io exchange are not online activities.” The chief executive said that no taxes would be charged locally and when trading futures on his platform.
See also: Terra risen from the dead? LUNA price up 300% in September
Unlike other exchanges that seemed to only support the burn with words, MEXC Global held a limited-time event to burn the LUNC token. The exchange has promised to reduce the commission for LUNC/USDT spot trading from September 3rd to 17th. Back in May, MEXC supported Terra Burning’s efforts with a month-long buyout and burn event to help revive LUNC. Despite their best efforts, the exchange still couldn’t escape the crosshairs of criticism when a community member called for the exchange to be burned down for good.
Disclaimer: This article has been updated with a response from Gate.io. Cointelegraph reached out to MEXC Global but received no response.